Wednesday, August 26, 2009
"It was never about him"
Safe to say you won't find a more moving tribute to a friend than what Vice President Joe Biden conveyed earlier today on the passing of Sen. Edward Kennedy. Say what you will about our political process. Just don't confuse the messenger with the message when it comes to tributes. What Vice President Biden conveyed today on the passing of Sen. Edward Kennedy should be instructional for leaders of every shape, size or persuasion. For more on this moving moment, go to http://www.huffingtonpost.com/2009/08/26/bidens-emotional-kennedy_n_269331.html.
Tuesday, August 04, 2009
Insidious trend
So let's say you're a former CEO who moves into private equity. Before doing so, you help run a major company into the ground by leveraging up via acquisition when that same company needed to be paring down costs and changing its processes. Granted you did cut costs when losses started to mount. But that was only after the fact when you had no real choice.
Fast forward a few years later. You're still hanging out in private equity, tapping the rolodex for deals. Another major company from your homeland comes calling with a board seat. A few years later, you're made Chairman to calm things down after that same company goes through a major proxy fight.
Jacques Nasser, a.k.a. Jac the Knife, must be feeling pretty good right now. BHP Billiton, the Australian mining conglomerate, has just turned to the former Ford CEO to help sort out its future path. Here's the announcement: http://www.nytimes.com/2009/08/05/business/global/05mine.html?ref=business
Some might call this failing upward. Others might yawn and say "business as usual." A few might even have the courage to say, "eminently qualified for the job. Great leader," which is what Cerebrus basically said about Bob Nardelli in a recent statement after naming Nardelli to a key post following the Chyrsler bankruptcy.
This type of revolving door is an insidious trend that really needs have a door stop put in place. No failed CEO of a major company should go on to serve as Chairman of another major company. Period. End of story.
Note: BHP told the New York Times that they consulted with Heidrick & Struggles on the selection of Nasser and KMPG on a secret ballot distributed among board members.
Next thing you know boards will be playing duck, duck goose to ratify these types of decisions.
Fast forward a few years later. You're still hanging out in private equity, tapping the rolodex for deals. Another major company from your homeland comes calling with a board seat. A few years later, you're made Chairman to calm things down after that same company goes through a major proxy fight.
Jacques Nasser, a.k.a. Jac the Knife, must be feeling pretty good right now. BHP Billiton, the Australian mining conglomerate, has just turned to the former Ford CEO to help sort out its future path. Here's the announcement: http://www.nytimes.com/2009/08/05/business/global/05mine.html?ref=business
Some might call this failing upward. Others might yawn and say "business as usual." A few might even have the courage to say, "eminently qualified for the job. Great leader," which is what Cerebrus basically said about Bob Nardelli in a recent statement after naming Nardelli to a key post following the Chyrsler bankruptcy.
This type of revolving door is an insidious trend that really needs have a door stop put in place. No failed CEO of a major company should go on to serve as Chairman of another major company. Period. End of story.
Note: BHP told the New York Times that they consulted with Heidrick & Struggles on the selection of Nasser and KMPG on a secret ballot distributed among board members.
Next thing you know boards will be playing duck, duck goose to ratify these types of decisions.
# # #
Monday, August 03, 2009
Red rover, red rover, send Sallie over
(Editor's note: This column only represents the author's views, which are blogging by nature. Tinges of sarcasm are subject to safe harbor statement protection and do not intend to offend or misinform.)
In a largely unexpected move underscoring significant change, Bank of America (BofA) today appointed former Citi CFO and practice head Sallie Krawcheck as the bank's new leader in charge of global wealth and investment management.
Observers and compensation experts alike were seen quietly listening along the New York to Charlotte corridor for the original red rover request, which could be heard sometime this morning between BofA CEO Ken Lewis and Citi CEO Vikram Pandit.
This move certifies the power of failing up in an industry that's been flailing since well before last year's market collapse.
Krawcheck will join a senior team that now includes at least three bona fide candidates to replace CEO Ken Lewis when he's ready to go -- or when the board decides it's time for him to go.
There is no reported timetable for either option, although Lewis has hinted in previous interviews that it's not exactly a great job at the moment. Neither Lewis nor BofA board Chairman Walter Massey were available for comment, according to their personal bartenders.
Chairman Massey continues to move swiftly and deftly with mixing up the board's composition at the behest of the Obama administration. How he's able to do so without the official help of any of the major executive search firms defies human reason.
The only real question left behind this high-level talent mix-up is what role did the government play in approving the selection of Krawcheck? What exactly was required to get this plum assignment -- performance in previous positions? Extensive industry experience? Long lost uncle related to Obama or Geithner?
Most importantly...What will Krawcheck earn in her new position compared with what she received at Citi? Bonus watchers at both leading financial institutions will be waiting patiently for the answer.
The appointment of Krawcheck to head what's left of Merrill Lynch also unofficially signifies an internal horse race for top job at BofA. While it remains unclear who will ultimately get the CEO position, one thing is abundantly clear: The race will not produce anything dramatically different than what's been seen thus far.
Meanwhile, in other news, AIG has appointed a former MetLife CEO to replace the insurer's outgoing CEO, Edward Liddy, who used to run AllState. And Apple has decided that it's time for Eric Schmidt, CEO of Google, to step off the Cupertino, Calif.-based company's board. Liddy is rumored to be Schmidt's replacement, but the TGR could not confirm this to be true as of press time. Something about iPods not working in the board room.
Ah yes, the more things change, the more they stay the same. Captain Weill, more yacht steam -- it's time to return to port.
In a largely unexpected move underscoring significant change, Bank of America (BofA) today appointed former Citi CFO and practice head Sallie Krawcheck as the bank's new leader in charge of global wealth and investment management.
Observers and compensation experts alike were seen quietly listening along the New York to Charlotte corridor for the original red rover request, which could be heard sometime this morning between BofA CEO Ken Lewis and Citi CEO Vikram Pandit.
This move certifies the power of failing up in an industry that's been flailing since well before last year's market collapse.
Krawcheck will join a senior team that now includes at least three bona fide candidates to replace CEO Ken Lewis when he's ready to go -- or when the board decides it's time for him to go.
There is no reported timetable for either option, although Lewis has hinted in previous interviews that it's not exactly a great job at the moment. Neither Lewis nor BofA board Chairman Walter Massey were available for comment, according to their personal bartenders.
Chairman Massey continues to move swiftly and deftly with mixing up the board's composition at the behest of the Obama administration. How he's able to do so without the official help of any of the major executive search firms defies human reason.
The only real question left behind this high-level talent mix-up is what role did the government play in approving the selection of Krawcheck? What exactly was required to get this plum assignment -- performance in previous positions? Extensive industry experience? Long lost uncle related to Obama or Geithner?
Most importantly...What will Krawcheck earn in her new position compared with what she received at Citi? Bonus watchers at both leading financial institutions will be waiting patiently for the answer.
The appointment of Krawcheck to head what's left of Merrill Lynch also unofficially signifies an internal horse race for top job at BofA. While it remains unclear who will ultimately get the CEO position, one thing is abundantly clear: The race will not produce anything dramatically different than what's been seen thus far.
Meanwhile, in other news, AIG has appointed a former MetLife CEO to replace the insurer's outgoing CEO, Edward Liddy, who used to run AllState. And Apple has decided that it's time for Eric Schmidt, CEO of Google, to step off the Cupertino, Calif.-based company's board. Liddy is rumored to be Schmidt's replacement, but the TGR could not confirm this to be true as of press time. Something about iPods not working in the board room.
Ah yes, the more things change, the more they stay the same. Captain Weill, more yacht steam -- it's time to return to port.
# # #
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